Trump tariffs burden German car manufacturersDonald Trump's announcement to impose tariffs of 25 percent on car imports to the USA is causing great concern in the German automotive industry. Companies such as Volkswagen $VOW3 (-2,54 %)BMW $BMW (-2,58 %) and Mercedes $MBG (-2,43 %) in particular must be prepared for considerable consequences. These new tariffs particularly affect vehicles imported into the USA from Europe. Fortunately, cars produced in the USA will be spared these additional duties. Nevertheless, the pressure on German manufacturers will increase as they will have to adjust their prices in order to remain competitive. Uncertainty over future trade relations between the USA and Europe remains a crucial issue for car manufacturers.
Von der Leyen stands up for EU workersIn the current situation, EU Commission President Ursula von der Leyen has clearly positioned herself and emphasized that the EU must stand together as a major trading power to protect the interests of its workers, companies and consumers. In view of the new tariffs, it is important that the EU stands united in order to minimize any negative impact on the European economy. EU Commissioner Maroš Šefčovič had recently held talks in Washington to avert the punitive tariffs, but without success. The challenges for the automotive industry, especially in Germany, are palpable and the coming months will be crucial in finding solutions. If the EU does not act together, the economic consequences could be even more serious than they already are.
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